Keepin touch

Whether you have a question, comment, suggestion or any problem in the purview of the government, send us your message and we will try to respond as soon as possible. If your problem is not in our purview, we will forward your message to the relevant institution.

The Government of the Republic of Serbia

In the service of citizens

Creating conditions for greater inflow of foreign investment

Belgrade, 1 March 2005

Serbian Deputy Prime Minister Miroljub Labus said today that the publication of the Report on Transition by the European Bank for Reconstruction and Development and the White Book put out by the Forum of Foreign Investors will serve as major tests and indicators of the Serbian government’s work.

Miroljub Labus

Speaking at the presentation of the Forum's White Book for 2005, Labus said that the government is working hard to ensure full implementation of laws and improvement of the situation in the property development market so that foreign investment can play a key role in fuelling economic development in Serbia.

According to Labus, the priorities of the Serbian government in 2005 will be the positive feasibility study assessment, foreign trade deficit reduction, continued macroeconomic stability, creation of conditions for greater inflow of foreign investment and acceleration of privatisation and restructuring of large companies with the aim of preparing them for ownership transformation.

Labus said that the government is dealing with potential political obstacles to the inflow of capital including the level of cooperation with The Hague Tribunal, the solution of the status of Kosovo-Metohija and relations within the state union of Serbia-Montenegro. He went on to say that he does not expect political unrest this year.

The Deputy Prime Minister said that Serbian imports and exports recorded a sharp upward trend in 2004, and that growth in exports was linked to a growth in GDP, while larger purchases of raw materials and equipment spurred the import rate up.

Labus specified that the double-digit inflation rate seen in 2004 can be partly attributed to the announcement of the implementation of the value added tax (VAT) and that January’s 2.7 percent inflation was triggered by a rise in prices of petrol and services, while February’s rate of 1.5 percent was caused in part by increases in the prices of oil derivatives.

He reiterated that in 2005 the government will implement strict fiscal policy with the aim of maintaining economic stability and improving development, but stressed that the government has a different standpoint on this issue from some domestic economic circles.